When we can expect employments to grow?

The problems faced by U.S.  Real estate market is unquestionably due to growing unemployment. If you see right from the beginning, the difficulties U.S. economy faced somewhere from the start of 2006 were cyclic in effect – ballooning of adjustable rate mortgages; repayment installment going beyond the family budget; defaults; delinquencies; foreclosures; stoppage of inflow of funds to the entire financial system of the country; closing down of major financial institutions; credit-crunch; companies and government employment cuts; and again more foreclosures till this day.

The problem of joblessness echoed in all sectors, and financial activities by reduced consumer spending, and the gloom of recession setting in strongly in the country from December 2007. If financial recovery is to be achieved sooner than later, the one and only solution is providing jobs and more jobs, rather than government aids through mitigation programs, which can address the problem only facially, but cannot cure the cause of the disease.

Talking of providing employment, the base of U.S. economy is provision of employment mainly by the private sector, looking back in the history. Statistics show an alarming trend in this regard. The total number of jobs lost in the year 2008 and 2009 account for as huge as 8.4 million. As against this, the total number of jobs provided by private employers during the 6 months ended June this year is a mere 559,000 jobs.

Financial experts say if we are to reduce the unemployment rate – from 9.5 percent nationally in June, which remains unchanged in July as well – approximately 200,000 jobs are to be added each month. But in reality, according to figures provided by the Labor Department, only 71,000 jobs were added by companies in the month of July 2010.

As for job losses, totally in the month of July, 131,000 jobs have gone, which includes sending home 143,000 temporary employees recruited for the purpose of 2010 census. The Labor Department estimates for provision of jobs are getting revised every month. For example in June, the figure fell from previous estimate; and in July against the estimated private job gain of 83,000, it had to be revised as 31,000.

All put together, it will be years from now to regain the losses in total employment by private sector and government offices.

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